U.S. federal prosecutors have charged Google software and security engineer Michele Spagnuolo for allegedly using confidential company data to place insider bets [1].
The case highlights the vulnerability of internal corporate data and the emerging legal risks associated with decentralized prediction markets. Because Google's search trends can signal real-world outcomes before they are public, this information represents a high-value asset for illicit trading.
Spagnuolo was arrested in Switzerland following allegations that he accessed internal Google search-trend data [2]. Prosecutors said he used this proprietary information to place trades on Polymarket, a prediction-market platform [3]. By leveraging non-public insights into what users were searching for, the engineer was allegedly able to predict outcomes with an unfair advantage [3].
According to investigators, the scheme allowed Spagnuolo to net approximately $1.2 million [1]. The specific nature of the bets varies across reports. Some sources indicate he targeted specific outcomes, such as whether the streamer D4vd would become the most-searched person on Google in 2025 [4]. Other reports suggest a broader use of the Year-in-Search data to inform various trades on the platform [2].
Google's internal security protocols are designed to prevent the misuse of such sensitive data, yet the charges suggest a breach of these safeguards by a trusted employee [5]. The legal action marks one of the first major instances of a tech employee being charged for utilizing search-trend analytics as the basis for insider trading in a prediction market [5].
Spagnuolo now faces federal charges in the United States as the investigation into the extent of the data breach and the total volume of trades continues [2].
“Michele Spagnuolo allegedly used confidential search-trend data to place Polymarket bets that netted roughly $1.2 million.”
This prosecution signals that U.S. authorities view the manipulation of prediction markets using corporate data as a form of insider trading. As platforms like Polymarket grow in popularity, the definition of 'material non-public information' may expand to include search-trend analytics, potentially leading to stricter internal monitoring at major tech firms.
